Do you belong to an esteemed family that has accumulated financial capital over generations and looking to invest in new promising ventures?

Family offices manage the wealth of high networth households and can take many organizational and operational forms. However, the common thread among them is that they look after the day-to-day administrative and management affairs of the collective assets of one or more families.

They can be either single family offices (SFO) thatmanage wealth of people having a common ancestry or sharing the same surname; or multi family offices (MFO) where wealth from different families are pooled together.

Family offices are set up for intergenerational or inter-family wealth transfer, and their basic objective is to increase family wealth over time. They have traditionally been managing wealth using the services of investment managers, who in turn invest in all types of assets – gold, equities, alternative assets, etc. However, lately they have started hiring experts and directly investing in riskier avenues like new business and startups also. They typically provide seed and growth capital to startups and are also sometimes involved in providing guidance and management to the companies.

Challenges

Family offices have not been traditionally investing in startups, and do not have much experience in this field

Lack of expertise and talented pool of resources to analyze and invest in startups

Deploying capital in a small number of projects can lead to concentration risk, taking away the advantages of diversification